I gave my house and adjacent land for manufacturing of shoes. That house was given on lease. The lease deed was unregistered, but both parties signed it. The lease was accepted on payment of twenty thousand rupees per month as rent. 

The lessee enjoyed it for four years. That lease was for 8 years. Now I want to file a case for recovery of rent for 2 years and also for the compensation of remaining years. The lessee vacated the house without giving notice. Please guide about unregistered lease deed and opportunity to get compensation.

Question from: West Bengal

This lease must be registered. According to section 107 of the transfer of property act, a lease for the period of more than one year or of year to year or reserving of yearly rent must be registered. An unregistered lease may cause a severe effect on the enforcement of the right. Such deed shall not be admitted in evidence. You cannot ask for specific performance of the contract from unregistered lease deed.

An unregistered lease deed renders the lease into a month to month. It shall take shorter the period of notice from 6 months to 15 days. The lessee can terminate the lease on giving 15 days’ notice instead of 6 months. He was bound to give six months’ notice if the deed was registered. But he was bound to give only 15 days’ notice.

An unregistered lease deed cannot empower the lessee to terminate the lease without giving any notice. He is bound to give notice. You gave possession over the premises to the performance of the lease. This act renders the lease complete. This constitutes a complete contract. Therefore, you can claim compensation. He cannot deny that there is not a valid contract or a valid lease. The lease is valid in the absence of its registration under section 107 of the transfer of property act.

You can recover all due rent from him. You can also get compensation for four years because he terminated the lease without giving notice. Notice is mandatory under section 106 of the transfer of property act. That notice must be in writing. Oral notice is not effective. You can claim compensation by unregistered lease deed because the validity of lease is not in question. He has committed a breach of contract hence liable to compensate under section 73 of the Indian contract act.